I sure hope not. Hope it stays independent from Nexgen.
Thing with Nexgen is that so far they've shown us that there won't be frequent updates. That's not a good sign for a dashboard (arguably the most important app for the Xbox). So, why merge with them? Besides...competition is good for all the dashboards. It keeps everyone working hard and gives the consumers choice.
*EDIT*: Out of all fairness, I just wanted to throw in BenJeremy's response to a similar comment on the MXM forums. Here it is:
"As for merging with neXgen, I like Undead and Team Assembly, plus the neXgen project is firmly associated with Team Xecutor, which puts them on solid ground for many undocumented features. Combining efforts doesn't make MXM go away.... on the contrary, MXM would continue to work as a dashboard, but primarily, would really improve as a DVD-R compilations menu system.
There will be a need for application launchers to do a bit more in the near future; working with those guys will insure MXM stays current, plus I can help on the neXgen effort to provide both my experience and ideas, as well as commonize many things.
My involvement with neXgen would be a win-win all around, I think, except for those dashboards unwilling to keep up with the rest of the world. "